From aftermarketNews Staff & Wire Report
ANN ARBOR, Mich. — Affinia Group Inc. has announced plans to acquire 85 percent of HBM Investment Limited, owner of one of the world’s largest drum and rotor manufacturing companies, Longkou Haimeng Machining Co. Ltd.
The company said the acquisition will significantly expand its worldwide manufacturing capacity for high-quality brake components and also provides Affinia with a strategic opportunity for continued market expansion through Haimeng’s current OEM and aftermarket customer base in Asia and Europe.
"This new business venture clearly reinforces our commitment to excelling as a major global manufacturer of aftermarket products," said Terry McCormack, president and CEO of Affinia. "We have purchased products from Haimeng for a number of years and can attest to the quality of its manufacturing assets and the talent of its staff and management team. The combination of Affinia and Haimeng gives us world-class manufacturing in China, while enhancing our market access for growth around the world. We will be able to offer our global customer base a significant opportunity to improve their inventory turns and Gross Margin Return on Investment (GMROI)."
Haimeng was founded in 1997 and operates more than 1 million square feet of manufacturing facilities in Longkou City, Shandong, China. The privately held company employs approximately 2,300 in its state-of-the-art manufacturing facilities, complete with extensive research and development capabilities. Haimeng serves both aftermarket and original equipment manufacturers throughout Asia, Europe and North America.
"Our joining forces with Affinia is a win-win," said Zhang Haibo, president of Haimeng. "We offer manufacturing facilities and technical expertise with a proven track record, while Affinia offers a family of brands recognized the world over. Affinia customers will benefit most of all with expanded access to the quality products, comprehensive services and trusted brands they need."
The agreement is expected to be complete by the end of the third quarter of this year.
"We have been implementing a strategic business plan for Affinia over the past three years to assure the highest-quality products for our customers," McCormack said. "This new venture with Haimeng is a key element in our continued transformation from a North American-based manufacturing company to a global producer with plants in Europe, Asia, North and South America."
For more information about Affinia, visit: http://www.affiniagroup.com.
